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Disintegration and trade in South-eastern Europe

Author

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  • Olivier Lamotte

    () (ROSES)

Abstract

This paper analyses the impact of disintegration of an economic union on trade patterns. Our study focuses on South-eastern Europe, which was highly fragmented during the nineties because of the dissolution of the Council of Mutual Economic Assistance (CMEA) and of the Socialist Federal Republic of Yugoslavia (SFRY). The empirics are based on the gravity equation and the estimation uses a 29-country panel database for 1993-2001. We show that despite the setting up of barriers to trade and the war, trade flows between countries of the region remained higher than explained by their economic size and mutual distance.

Suggested Citation

  • Olivier Lamotte, 2003. "Disintegration and trade in South-eastern Europe," Cahiers de la Maison des Sciences Economiques j04031, Université Panthéon-Sorbonne (Paris 1).
  • Handle: RePEc:mse:wpsorb:j04031
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    File URL: ftp://mse.univ-paris1.fr/pub/mse/cahiers2004/J04031.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Disintegration; gravity equation; South-eastern Europe;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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